In any product-based industry, the production cycle is quite simple - there is a demand for a product, a company manufactures it and then ...

The Importance of Minimizing Residual Inventory in Supply Chain Management

The Importance of Minimizing Residual Inventory in Supply Chain Management

August 2021

8 10 99

 In any product-based industry, the production cycle is quite simple - there is a demand for a product, a company manufactures it and then sells it to the target customers. However, the world of large-scale businesses is not as straightforward as we know it. There are a lot of steps involved, thus, arises the need for the supply chain management.


What is Supply Chain Management?


Supply Chain Management is the process of handling the whole production flow, from sourcing of the raw components to the delivery of the final goods to the consumer. A supply chain company forms a network or “links”, as they’re called, to easily monitor the movement of the product till they reach its users.


The biggest benefit of supply chain management is the freedom it allows the manufacturing companies to cut extra costs and ensure faster delivery. One of the key elements in this process is maintaining tight control over the internal inventories, especially the residual inventory.


What is Residual Inventory?

Residual Inventory is the leftover stock in a company’s warehouse which could not be sold due to lack of demand among other reasons. This residual inventory can turn into a huge liability for a company, manufacturer, or retailer if retained for over three months. Hence, it is important to have a ‘safety stock’ in the right quantities.


Why is it necessary to minimize residual inventory?

A non-perishable goods-based business may find it profitable to manufacture and save up stock to fulfill any backorders. However, if the stock is not supplied for any reason, the costs will soon start adding up, making the residual inventory an expensive deadweight. Hence, the costs of transportation & storage, over-investment in stock and minimal cash flow make it essential to minimize residual inventory.


There are multiple steps and methods to reduce and control the excess inventory based on the specific type of business. Some common steps involved are:

  • Maintain a precise supply forecast of your stock with an improved analysis method.

  • Reduce manufacturing lot sizes by monitoring the manufacturing leads and order sizes.

  • Review suppliers’ lead and delivery times regularly.

  • Eliminate obsolete inventory periodically.


Minimizing residual inventory in supply chain management is crucial for a smooth cash flow and to make more room for profit rather than wasteful investments. 


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Counterfeit electronic chips are among the most significant threats when sourcing any electronic parts. In fact, as per recent research, th...

How to avoid purchasing suspect/counterfeit electronic chips?

How to avoid purchasing suspect/counterfeit electronic chips?

August 2021

8 10 99

Counterfeit electronic chips are among the most significant threats when sourcing any electronic parts. In fact, as per recent research, the risk of unintentionally purchasing counterfeit electronic components such as chips increases by 25% every year. Simply avoiding purchasing electronic parts from a specific country (such as China) has proven ineffective in reducing the risk of counterfeit parts. As per research conducted in 2019, more than 60% of the counterfeit electronic components were delivered from suppliers of various origins other than China. Thus, it is crucial to employ effective counterfeit mitigation strategies to prevent counterfeit electronic parts. 



Here are a few ways to avoid purchasing suspect/counterfeit electronic parts


Risk assessment of various types of counterfeits

If you are considering buying electronic chips, you must be knowledgeable about the various types of counterfeits. When you are aware of the potential risk of counterfeit products, it can help you better manage the risk of counterfeits from entering your inventory.


Counterfeit detection and mitigation strategy


Many buyers decide to employ an in-house counterfeit detection and mitigation team to identify and dispose of counterfeit components. However, you can also rely on third-party certified experts to conduct the necessary testing and counterfeit inspection to ensure the delivered products meet the appropriate standards. 


Sourcing products from a reliable supplier


The best way to avoid/minimize the risk of counterfeit products is to source the required electronic components from reliable electronic component distributors. The ERAI is a reliable resource for the up-to-date database of reliable suppliers.  It strives to connect all sectors of the electronic supply chain from OCMs, OEMs, and CMs to Distributors, Test Labs, and Government Organizations for effective counterfeit part and supplier risk mitigation across multiple industry sectors such as defense, aerospace, medical, nuclear and commercial. 


Controlling and reporting counterfeits


It is crucial for buyers to report any information about counterfeit products and fraudulent suppliers on the shared industry resources to keep all the relevant parties well-informed regarding potential risks. The shared industry information exchange resources (such as ERAI) can be highly beneficial in controlling and reducing the risks of counterfeit products.


If you are looking to source authentic electronic chip supplies from reliable electronic components distributors, contact our experts at Resion. Resion is a reliable supplier of a wide range of electronic components for military, aerospace, defense, and commercial industries. We are also the industry-leading supply chain solution provider with an extensive inventory of electronic components. Get in touch with our team for expert assistance.

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E lectronic ceramic components are equipped with many ideal properties for different applications in power electronics. These are frequentl...

What are the inspection methods used for quality control of Electronic Ceramic Components?

What are the inspection methods used for quality control of Electronic Ceramic Components?

August 2021

8 10 99

Electronic ceramic components are equipped with many ideal properties for different applications in power electronics. These are frequently used in manufacturing many kinds of equipment for medicine, machinery, electronic appliances, and many other industries. The ceramics are used in circuit boards and are primarily responsible for ensuring the machine’s proper functioning. Electronic ceramic components offer a higher conductivity, making the material ideal for various applications in communication systems, aircraft circuit boards, satellite technology, wireless devices, and more. However, with rapid IT innovations, the quality control for these components has become much more challenging. 

Electronic ceramics are used in small to large-scale integrated circuits, capacitors, sensors, resistors, and magnetic devices used in large commercial industries. Therefore, it is crucial to ensure the material used is of high quality. A high degree of purity is essential for improved performance of ceramics used in electronics and electronic parts. Thus, different inspection techniques are used to ensure effective quality control of electronic ceramic components.

Following are the various inspection methods used for quality control of electronic ceramic components:


  1.  Visual inspection


Visual inspection is the primary quality control method used for every type of electronic appliance to determine if there are any visible defects in the electronic appliances or parts.  An InterCEPT certified inspector inspects the packaging and labels on the electronic component for a detailed visual examination for any typos, fake numbering, blacktopping, and many other such indicators. 


  1. X-Ray testing


If the visual inspection does not reveal any discrepancies, next, X-Ray inspection is used to verify the inner workings and structure of the electronic ceramic components. If there are any defects, unusual size, exceeding quantity, or indication of tempering, it will be revealed through X-ray testing. The images of the component can be compared with the images of the original parts to detect any counterfeits.




  1. Decapsulation


Sometimes even X-Ray testing cannot give conclusive results. Thus, additional testing such as failure analysis testing techniques is used to verify the authenticity of the electronic ceramic parts. Decapsulation is a destructive test that is usually performed on a sample component using failure analysis (FA), constructional analysis (CA), and destructive physical analysis (DPA) techniques. In decapsulation, an internal visual inspection is first conducted using a high-powered microscope to verify the manufacturer’s markings, defects, typography, part numbers, mechanical accuracy, and authenticity. Next, chemical etching methods are used to verify each component used in the manufacturing.


There are many different types of decapsulation methods used for different kinds of electronic device components, depending on their application purposes. Various chemicals (such as sulfur acid, nitric acid, etc.) are used for decapsulation, rendering the sample unusable in most cases since it is a destructive testing method. Therefore, it is usually performed after radiography, external visual examination, leak check, and other inspection testings as required depending on the component to ensure its authenticity. If the sample fails the analysis, the whole batch will need to be discarded. 


The electronic ceramic component inspections can be conducted by your in-house certified team or a certified third-party provider offering reliable visual, x-ray, and decapsulation testing services. If you lack the in-house quality control capabilities, get in touch with our team for reliable inspection services to meet all your needs.


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The Benefits of X-Ray Inspection Equipment in Quality Control.

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